The increase follows gradually narrower declines in sales over the past five months, partly due to tax breaks and subsidies to spur demand after vehicle sales collapsed in the wake of the economic crisis.

Recovering sales are the latest positive sign for Japanese auto makers, after they mostly reported improved earnings for the April-July quarter on the back of government purchasing incentives in key markets.

Toyota sales, excluding those of its upscale Lexus brand, rose 9.0% in August, the first on-year increase since July last year. Honda reported an increase in sales for the second month in a row, with a 13.4% rise.

Nissan posted a sales decline of 1.4% in the month.

The figures don't include sales of mini-cars or mini-trucks, which are vehicles with engine capacities of 660 cubic centimeters or less.

Auto sales, as measured by registrations of vehicles with the government, are closely monitored by economists since they are the first consumer spending numbers released each month.

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